Chip manufacturing equipment maker Applied Materials Inc. said Monday its board has approved a plan to repurchase up to $2 billion of its shares over the next three years.

The company also raised its regular quarterly dividend by 17 percent, or 1 cent, to 7 cents.

The dividend is payable on June 16 to shareholders of record as of May 26.

As of Jan. 31, Applied Materials had about 1.34 billion shares outstanding.

Shares rose 6 cents to $12.35 in morning trading.